What happens if I payout a Consumer Proposal with a lump sum in full?
April 6th, 2010 by Questions
We are considering Consumer Proposal over bankruptcy. I have a Pension (locked in) that I might be able to cash in due to financial hardship. That amount would cover the monthly payments proposed. Would the deal then be closed early instead of over 5 yrs? How do the creditors view this?
Thanks
Posted from: British Columbia
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April 07, 2010 at 10:57 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
You are correct, if you pay the consumer proposal in one lump sum and your part of the consumer proposal is finished.
In terms of how this is perceived by your creditors, thy usually look very favorable on a lump sum proposal like this. The key is you still have to make sure that the consumer proposal offers more to the creditors than a bankruptcy, so it is important you consult with a licensed trustee and they will help you to determine what type of an offer will be necessary.